Filenews 5 January 2021
The construction sector and major development projects have been one of the main sectors of the Cypriot economy in recent years. The construction activity benefits, directly or indirectly, thousands of other professionals, such as architects, civil engineers, contractors, real estate agents, importers of building materials, furniture manufacturers, tourist shops, restaurants, but also banking organizations, legal and audit firms and others.
The construction industry currently employs over 40,000 workers, confirming its huge contribution to the development of the Cypriot economy, both in contribution to GDP and in jobs. According to the report data published by the EBRD, "Investments, particularly in the construction sector, were one of the main growth levers of the Cypriot economy in 2019". In addition, according to official data from the Statistical Office, in the first quarter of 2019 the construction sector had an added value of €303 million. €324 million in GDP and €324 million in GDP. in the second quarter.
The above make construction one of the sectors that drive the country's economy to growth. Over time, the construction sector has been the main driver for the country's economy and one of the main pillars of Cyprus' economic growth.
The sector continues to design and implement a series of major development projects that contribute decisively to the strengthening of the Cypriot economy, sustainable development and the quality of life of citizens. The construction sector continues to employ thousands of people, producing results, giving life to many businesses, in multiple sectors of economic activity that make up a large part of the real economy.
A key condition for not adversely affecting the construction sector and major development projects is the continuation of their financing. This will determine the smooth flow of payments and feed the entire construction chain with cash and consequently all other sectors directly linked.
At the same time, it is necessary to provide new incentives, both fiscally and urbanly, but also to properly formulate a new Investment Programme, with the aim of creating new opportunities for domestic and foreign investors, which undoubtedly adds value to the Cypriot economy. In addition, rapid authorisation and simplification of procedures is a prerequisite and the State should make a positive contribution to this process.
Below are presented large construction projects that are under construction and represent the members of the Association of Major Development. These projects concern many sectors of the economy, such as Tourism, Health and Wellness, Sports, Shopping Centers, Marinas, Residential Development and Education. Their completion is expected to reignite investment interest and boost employment in Cyprus, while generating significant tax and other revenue for the state, due to the boost to the wider economy.
These developments make the Association one of the most dynamic exponents of the collective effort for growth in the country, being a driving force for growth for the Cypriot economy, but also a magnet for foreign investment on the island.
In more detail some important projects and their contribution are described below:
City Of Dreams Mediterranean by Melco consortium and CNS Group
The implementation of the largest tourism development in Cyprus begun in 2017 and the total cost of the investment is expected to reach €650m. The project is a joint venture between Melco and CNS Group. The City of Dreams Mediterranean will be the largest multi-themed casino-resort in Europe. Its facilities will include a play area, a five-star hotel with 500 rooms and luxury villas, 11 restaurants and cafés, a wellness centre, a sports centre, swimming pools, shopping areas, an outdoor amphitheatre and large green areas. The City of Dreams Mediterranean will have a 9,600 m2 conference centre, which will also have exhibition spaces. The project is expected to attract an additional 300,000 tourists a year and will promote Cyprus internationally as a conference destination. By the final implementation of the project, 11,444 staff are expected to be employed, while its completion is expected to create 6,530 jobs. The impact of the project on the Cypriot economy so far amounts to €417,761,550, while at the completion of the project, the annual contribution to GDP is estimated to be 4%.
MARIANNA AGIAS NAPAS from M. M. MAKRONISOS MARINA LTD
Construction work on the iconic Ayia Napa Marina project officially began in January 2017 with the total construction cost amounting to €300m.
The company has a total of 60 staff, while in 2021 a further 25 people will join its workforce. The total gross payroll from the start of operations until November 2020 amounts to around €7m and the estimated revenue of the State for the same period amounts to around €20m. A project of the area and scope of Ayia Napa Marina will have a significant economic impact and benefits at local and international level. In addition to the significant commercial and tourist upgrade of the free province of Famagusta, the development of the project has created, creates and will continue to create a significant number of new jobs both in the company itself (Marina Ayia Napa) and in partner companies such as, construction, construction materials, equipment for homes and naval/maritime equipment, etc. In addition, through the marina's commercial zone and in particular through the stores that will operate on its premises, an equally significant number of jobs will be created. Companies active in the catering, entertainment, hospitality and tourism sector in general will have significant economic benefits from the increase in tourist turnout at Ayia Napa Marina. With an emphasis on the promotion of maritime tourism, especially in the days of the pandemic, the development of Ayia Napa Marina will continue to contribute decisively to the revitalization and promotion of Ayia Napa, as well as Cyprus, as the safest maritime and tourist destination, not only locally, but also internationally. In addition, the contribution that the project will make with its completion to the Cypriot economy through the contribution to Gross Domestic Product (GDP) is given.
EAGLE PINE GOLF RESORT by Aristo Developers
The new project is located in Limassol Province and has an area of 1,717,621m2. The total cost of the investment is estimated at around €500m. The project study team employs more than 15 people, while additional external partners are employed. With the completion and operation of the resort it is estimated that 300 people will be employed in construction and construction sites over the next 10 years. 200 employees are expected to be employed for the operation of the resort's Leisure Elements (Golf Stadium, Club House, Hotel and Shopping Centre). With the completion and operation of the project, the benefits of the State are estimated at €200m VAT and direct taxation from sales of services and products
Limassol Greens by Lanitis Golf Public Co Ltd
The project began to be implemented in the fourth quarter of 2019 and the total cost of the investment amounts to €400m. The project employed 15 people with a total salary of €750,000, while the state received €5m from the start of the project. In the medium term, 350 jobs and 800 indirect jobs (consultants, contractors, etc.) are expected to be created. At a later stage the revenue of the State is estimated to be in excess of €200m (taxes, VAT, licences).
Limassol Hills Golf Resort by Universal Golf Enterprises Plc
The design and licensing of the project began in 2012 with an estimated total construction cost of €400m. The development includes an 18-hole Par-72 golf course, a golf club, restaurants and cafes, a wellness centre with swimming pools, a sports centre, a small 32-room hotel, 520 luxury villas, 135 maisonettes and 121 apartments. It also includes a machinery maintenance centre, a biological water purification station, water pipelines from SALA and Pentakom, a photovoltaic park for self-generating electricity and 230,0002 public green spaces. The development is located east of Limassol, on the edge of the Limassol Forest at an altitude of 350m to 650m, in a unique area with excellent views and extends over an area of 2,000,000m2. It is only 15 minutes from St. Raphael's Marina and 25 minutes from the city centre. The company has already invested around €55m to secure the land and to design the project. At least 350 scholars and consultants have worked on the development to date. An additional 25 people are currently working on this project. The State has collected from the Company for compensatory fees and other rights of approximately €2m. to this day. The benefits of the completion of the project, which is estimated to have revenues of more than EUR 1 billion, will be enormous for the economy but also for society. The state will benefit with direct and indirect taxes of at least €300m over a period of about 25 to 30 years needed to fully implement the development. It is estimated that about 2,700 people will be employed at the construction stage of the project and another 750 or so during the operation of the resort. It will also give the region a lot of traffic and new jobs in the nearby communities that have been adversely affected by urbanization and desolation.
D. Zavos Group of Companies
The D. Zavos Group of Companies has so far completed more than 130 residential and commercial projects, enhancing the growth of the Cypriot economy and offering thousands of jobs to individuals and partner companies. Some of the Group's major projects that have been implemented or are in the process of being implemented are: The Address By The Sea. For the design, configuration and implementation of the 11-storey project, 40 companies cooperated, the number of employees exceeds 3,000, and many jobs are expected to be created with its operation. Zavos Aqua Park Vacation Club Annex part of Zavos Aqua Park Resort. Fenced community, permanent residence of 170 houses and apartments in the area of Germasogeia. 50 companies participated in the implementation of the project, while the number of employees exceeds 4,000. The project, with its operation, will employ a large number of employees. Gardea Private Medical Resort. The aim is to create an internationally recognized research institute, which will provide all treatment and rehabilitation services. The area of the project will be more than 27,000 sq.m. and will have 100 double rooms, 30 rooms specially designed for people with disabilities, 190 apartments and 32 villas. It will include dining areas, reception areas, club-house, private parking lots, green spaces, leisure facilities, multi-purpose areas, pharmacy as well as a shop that will serve the tenants and owners of the houses. Limassol Del Mar from the group consortium D. Zavos and Slim. The total investment of the project amounts to €350 million. The project strengthens the economy of the place through investors, but also through direct or indirect employment of about 7,000 people for its design and construction. In terms of state revenues since the start of the project, they are expected to reach €30m. (taxes, VAT, licences). Plaza Del Mar is expected to attract hundreds of visitors by creating a new destination for shopping and recreation, while offering access to specially designed parking spaces. Through the services it will offer for rentals, it will create additional turnover in the field of quality tourism and hospitality.
Leptos Group of Companies
The Leptos Companies Group employs about 2,400 people, 1,300 of whom work in the development/construction of projects and 1,100 in their operation. The contribution of the Group's projects to the revenue of the State amounts to many tens of millions in taxes and contributions. Indicatively, the cost of the annual payroll exceeds €25m.
Some of the Group's major projects that have been implemented or are in the process of being implemented are: Kamares Village, a completed large residential project with similar services and facilities that includes more than 1000 residential units. Coral Beach Hotel & Resort, the largest 5-star hotel resort in Cyprus. The last phase of the project is in the process of being licensed and both during construction and with its completion and operation dozens of new jobs will be created. Limassol Blue Marine, a large project under development in Limassol that includes residences and office spaces. Construction of the project has begun and about 1,000 people will be employed. Limassol Del Mar, Luxury residential and commercial development in the process of completion in Limassol by a consortium of the groups Leptos and Zavos. Construction is in full swing, bringing work to about 700 people. Adonis Beach Villas . Seaside villa development in Paphos which is in the process of completion The project is the largest construction site in Paphos. Neapolis SmartEco City, large multi-purpose development that includes residences, business park, university, hospital, trade. The project is in the process of being licensed. Neapolis University and Iasis Hospital are already operating as part of the development of the project's services. The development and construction of Neapolis SmartEco City will create hundreds of new jobs over a long period of time, and is expected to attract companies from abroad for installation in the business park, as well as a large number of students offering significantly to the economy of Paphos and Cyprus in general.
Trilogy Limassol Seafront by Cybarco Development Ltd
Work on the project began in January 2018 and the total cost of the investment amounts to €350 million. Trilogy develops on the largest plot of limassol's coastal front (21,500 sq.m.), occupying only 12% of its total. The project, in addition to the private spaces it will have for the recreation and relaxation of the owners, will also include a public square of 6,850 sq.m. with quality restaurants and shops. The project will be an attraction for both the residents of Cyprus and tourists, contributing to both the tourist and the wider development of the city of Limassol. Trilogy, the only destination on the island that combines the live, work & play triptych, attracts huge interest from both domestic and foreign buyers. Essentially it will be a seaside attractive destination for everyone, in the heart of Limassol. At the same time, it is expected that foreign buyers will contribute to the wider development of the economy of our country, as many will bring their families and businesses to Cyprus. In Trilogy, 300 people and more than 15 subcontractors are employed so far, and it is estimated that during the most intensive work the employees will exceed 500. The contribution to the economy of Cyprus - both indirectly and directly - is taken for granted, taking into account the contribution to the country's GDP of a landmark project, with contributions to income tax, social insurance funds from employees' salaries, and vat funds, since the amount paid from the start of the project to date amounts to €14 million. The project also contributes to the upgrading of the region, the creation of multiple jobs, the attraction of quality tourism and other important investments both in Limassol and the rest of Cyprus.
In summary, revenue for the State is significant and multiple, both in tax terms and in investment income. The realisation of this range of development projects is an important factor in the effort to create a competitive environment at international level for the local economy. These kinds of developments and investments inevitably give enormous momentum to the development of Cyprus.
